WASHINGTON -- The Small Business Administration and the Treasury Department this week released detailed loan-level data regarding the 4.9 million small business loans made under the Paycheck Protection Program (PPP).
Overall, PPP made $521 billion in forgivable loans to businesses nationwide. The average loan size was approximately $100,000, demonstrating that the program is serving the smallest of businesses, according to Treasury Secretary Steve Mnuchin.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80% of all small business employees, who are the drivers of economic growth in our country,” Mnuchin said. “We are particularly pleased that 27% of the program’s reach in low and moderate income communities which is in proportion to percentage of population in these areas.
The SBA released New Jersey-specific PPP loan data earlier this week. According to the SBA numbers, 125,688 PPP loans totaling nearly $4.5 billion ($4,463,997,130) were made in the Garden State and resulted in 531,360 jobs saved.
"Small businesses of all types and across all industries benefited from this unprecedented program," said Rohit Arora, CEO of Biz2Credit, an SBA-approved PPP lender, and one of the nation's leading experts in small business finance. "The state-specific numbers released by the government reinforce that PPP is working by keeping employees on payroll and sustaining of small businesses in New Jersey and across the country."
New Jersey Rep.Tom Malinowski (D-7th) one of the architects of the PPP lending program in the House of Representatives, called the Paycheck Protection program "a lifeline for small businesses."
"Throughout the 7th District, and now we know how helpful it's been in saving jobs during this public health crisis” said Malinowski. “I urge those eligible who have not yet applied to take advantage of the program before the August 8th deadline.”
The PPP was created by Congress to provide cash-flow assistance through 100% federally guaranteed loans to employers, which are forgivable if they maintain their payroll during this emergency. Congress recently extended the PPP lending deadline from June 30 to Aug. 8. For additional information on small business relief options and to apply for a forgivable loan, click here.
In April, Malinowski testified before the House Small Business Committee and called for significant reforms to the PPP to ensure that loans were going to truly small businesses. In May, he co-sponsored the Paycheck Protection Program Flexibility Act (PPP Act), which improved the program by making it easier for small businesses to cover necessary expenses and to give them more time to bring employees back. The PPP Act was signed into law on June 5th.
SBA Administrator Jovita Carranza added that she believes PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators.
“In three months, this Administration was able to act quickly to get funding into the hands of those who faced enormous obstacles as a result of the pandemic," Carranza said. "Small businesses of all types and across all industries benefited from this unprecedented program. The jobs numbers released last week reinforce that PPP is working by keeping employees on payroll and sustaining millions of small businesses through this time.”